KEY POINTS

HEALTH INSURANCE FOR EARLY RETIREES

• Fire fighters retire earlier than most professions, and many of these early retirees lose access to health insurance once they separate from service. Some jurisdictions have mandatory retirement ages that require them to leave the job before they become eligible for Medicare.

• Some jurisdictions offer retirees the option to remain in the employer-provided health plan, but require these retirees to pay most or all of the premiums. Whether the retirees retain their employer-provided insurance or seek another insurance carrier, it is not uncommon for retired fire fighters to spend 80 percent of their modest pension benefit on health insurance.

• Retired fire fighters often face significant and unique health care needs as a result of a career spent responding to emergencies in hazardous and stressful environments. These health conditions often result in increased premiums, placing an even greater financial burden on retired fire fighters and their dependents.

• Allowing early retirees to buy into Medicare would make health care more affordable for fire fighters and other Americans who lose access to employer-provided insurance when they need it most - during retirement.

• The Medicare Early Access Act would not significantly affect the Medicare Trust Fund because it would require those who buy into Medicare to pay the full cost of the premiums, without the federal government subsidy provided to those over 65.

• Proposals that expand access to health insurance save federal dollars in the long run by reducing costs associated with providing health care for the uninsured. Reducing the number of uninsured also alleviates strain on the nation’s over-burdened emergency response and care systems.

• The legislation allows early retirees who already have employer-provided retiree health coverage to enroll in Medicare and have their employer pay for a percentage of the monthly premium and cover medical services not paid for by Medicare.